Previous session:
APAC:
- Japan inflation expectations survey hits just under 2.5%, its highest ever
- PBOC Gov says expects economic growth to return to potential in 2022
- China's January air traffic - still floundering
- Construction of TSMC's first advanced US chip plant is 3 to 6 months behind schedule
- Japan finance minister Suzuki says yen moves partially behind price rises
- MUFG say "We are in the final period of the move higher in USD/JPY"
- The planned meeting of G7 finance officials has been delayed until March 1
- China January CPI 0.9% y/y (vs. expected 1.0%) and PPI 9.1% y/y (vs. expected 9.5%)
- PBOC sets USD/ CNY mid-point today at 6.3463 (vs. estimate at 6.3492)
- Reuters poll showing increasing expectations of a Federal Reserve 50bp rate hike in March
- Westpac reiterate their Reserve Bank of Australia August rate hike forecast
- ICYMI - US SEC is probing affiliates of Binance US arm
- US coronavirus - LA Country to remove its outdoor mask mandate on Wednesday
- Australia – Westpac-Melbourne Institute Leading Index data for January
- Nomura expect a 50bp hike at the March Fed meeting, add that USD upside becoming limited
- What is currency hedging & how can you begin?
- Reuters Tankan - manufacturer sentiment has hit an 11-month low
- ECB's Schnabel says she sees an argument for ending asset purchases
- Australian Treasury Sec Kennedy says fiscal policy support out of Covid has to be tapered
- Trade ideas thread - Wednesday 16 February 2022
- Private oil survey data shows headline draw in crude oil inventory
- ICYMI - White House & congressional Democrats are considering suspending federal gas tax
Chinese inflation data was the focus for the session. Both the CPI and PPI (January figures) came in below expectations and December’s numbers. A couple of points to note on the data:
- There is still rapid inflation at the producer level (PPI), albeit down on last month. Its not feeding into rapid CPI growth though.
- There is no inflation constraint on the People’s Bank of China easing policy further, should they wish to do so. The next opportunity for a rate cut to watch is the Loan Prime Rate setting (1- and 5-year LPRs) coming up on Monday February 21. Given the Medium Term Lending Facility (MLF) from the Bank earlier this week was at an unchanged rate expectations are very low for any LPR cut this coming Monday.
There was little apart from the Chinese data to impact the forex and the ranges across the board have been very limited. Its been a very quiet session for anything fresh out of Ukraine/Russia tensions.
BTC update:
